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Judge Approves Gov’t Takeover Of Dearborn’s Fidelity Bank

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DETROIT (WWJ) – Dearborn-based Fidelity Bank is closing, and will re-open Saturday as Huntington Bank. The bank was closed Friday after a judge approved the state’s petition to appoint the federal government as receiver.

WWJ and Fox-2 Business Editor Murray Feldman has a few words of advice:

Feldman says all funds in a non-interest bearing account are insured in full by the Federal Deposit Insurance Corporation. This is special coverage that goes until the end of this year. These include traditional checking accounts or what they call demand deposit accounts, accounts that do not earn any interest.

“This is important,” said Feldman. “If you have savings accounts that pay interest or certificates of deposit that pay interest, watch the mail and call the bank on Monday because they may be changing that interest on those investments, yes, even on CD’s that have not matured.”

The FDIC does allow the new institution to change the interest that the old institution paid.

Fidelity Bank has been in business since 1994. It’s the first FDIC-insured institution in Michigan to fail this year.